Ethereum began a downward correction at the $1,675 level against the US Dollar. To begin a new rise, ETH needs to remain at or above the $1550 support.
- Ethereum rose higher than $1,650 before beginning a downtrend.
- The current price trades below $1,600.
- On the hourly chart for ETH/USD, there is a bearish trendline that forms with resistance at $1,605 (data feed via Kraken).
- If it can clear the resistance of $1,600 or $1,615, then the pair will likely rise steadily.
Ethereum price corrects lower
Ethereum traded well above the $1550 support zone. ETH saw a renewed increase that was able the clear $1,600 resistance area and 100 hourly simple moving mean.
Although the price broke through $1,650, there wasn’t a test for $1,700. The price reached a high of $1,675 before it began a downward correction. The price fell below $1,620 and $1.600 levels. The 50% Fib Retracement level for the upward movement from $1,501 to $1,675 low, Ether prices declined below that.
It crossed the $1,560 support area. The price remained above the 61.8% Fib Retracement level for the upward movement from $1,501 swing high to $1,675 low.
Ether continues to consolidate losses under $1,600 as well as the 100-hourly simple moving average. Near the $1,600 area is an immediate resistance. On the hourly chart for ETH/USD, there is a bearish trend line that forms with resistance at $1,605.
Source: TradingView.com ETHUSD
Next is $1,615 as the major resistance. If the price breaks above $1,615 resistance, it could signal a steady increase. The price may rise as high as $1,675 in the above scenario. The price could reach the $1,720 resistance level with any additional gains.
Are There More Losses in Ethereum?
Ethereum could fall further if it does not climb over the $1,615 resistance. The $1,560 level is the initial support for the downside.
Near the $1,550 support level is where you will find next significant support. Below which price could gain bearish momentum. The above scenario could see the price falling towards the $1500 support level in the short term.
Technical indicators
Minutely MACD – MACD of ETH/USD has lost momentum and is currently in the bearish zone.
Hourly RSI – The RSI is currently below the 50 level for Ethereum/USD.
Major Support Level – $1,560
Major Resistance Level – $1,615
